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"Saudi Arabia's government is expected to announce spending cuts and a drive to raise revenue from new sources as it lays out a strategy to cope with an era of cheap oil, people familiar with Saudi policy-making said.

Markets in the world's top oil exporter are jittery because low crude prices have pushed state finances deep into deficit and so far, the government has not revealed a detailed, comprehensive plan to stem the flow of red ink.

But in coming weeks, authorities will make their intentions clearer. The state budget for 2016 is expected to be released on or around Dec. 21, official sources said."

"Brent crude, which tumbled to its lowest level last seen in 2008, may see continued weakness in the near-term, but a modest recovery is in sight according to analysts as supply rebalancing takes place.

Brent for January settlement declined $1.80, or 4.5 per cent, to $37.93 (Dh139) a barrel on the ICE Futures Europe exchange. It was the lowest close since December 24, 2008. The contract decreased 12 per cent last week. This triggered a sell-off in local equity markets including Dubai, Abu Dhabi and Saudi’s Tadawul indexes.

The current bout of weakness has been triggered the indecision of the Organization of the Petroleum Exporting Countries in its December 4 meeting, where they abandoned price support for crude by removing Opec’s production ceiling in an already oversupplied market."

"Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.
Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.
It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti."

"Qatari stocks led a retreat in Middle Eastern markets as oil’s decline to a seven-year low, scant evidence of a pick-up in Chinese growth and the prospect of a U.S. interest-rate increase next week unsettled investors across the region.
The QE Index sank 3.7 percent to close below 10,000, a key support level, for the first time since November 2013 and Saudi Arabia’s Tadawul All Share Index slumped to the lowest since 2012. The DFM General Index chalked up the longest losing streak in a year on investor concern that companies in Dubai, the Middle East’s commercial hub, may suffer if Gulf Arab governments reduce spending next year. The ADX General Index in Abu Dhabi, home to about 6 percent of the world’s proven oil reserves, lost 2.1 percent.
Emerging markets posted their worst week since September as investors brace for the Federal Reserve’s meeting and look for signs of an economic rebound in China. Markets across the six-member Gulf Cooperation Council are being additionally roiled by a rout in crude prices that’s stoking concern countries will pare back budgets. Oil, their main source of revenue, has extended losses since the Organization of Petroleum Exporting Countries chose to keep flooding the market at its Dec. 4 meeting.
“Welcome to the new normal: lower growth, lower government spending and more focus on core strategic infrastructure projects,” said Tariq Qaqish, the head of asset management at Dubai-based Al Mal Capital PSC. The company is focused on investments in stocks that are “negatively correlated to the drop in oil prices, including those in the airlines, telecommunications, logistics, and healthcare sectors,” he said."

"Saudi Arabia's index tumbled to its lowest level since late 2012 on Sunday after oil slumped to near 11-year lows and investors dumped stocks.
Saudi's benchmark plunged 3.5 to 6,709 points. The index is down 32 percent from a 2015 peak of 9,897 on April 30.
Brent has fallen 47 percent over the same period."

"Drydocks World, the Dubai government-owned marine engineer, has reached an impasse in its talk with creditors over US$2.3 billion of outstanding debts.

A recent meeting between the company, advised by Citibank, and creditors, represented by six financial institutions and advised by the American specialist firm Moelis & Co, ended with disagreement on terms of a proposed deal to restructure the debt in two tranches.

According to a financial source close to the situation, the company is believed to have proposed an extension of the first tranche of debt, about US$800 million that is due in 2017, with a small cash repayment element."

"Last week I attended the Platts Middle East Crude Oil Summit in Dubai, which discussed the various aspects of the current — and expected — oil market developments. And especially in the light of the latest Opec decision — or non-decision — not to specify a level of oil production for the coming six months and its attendant impact on falling oil prices.

One of the important revelations out from the summit is the situation of Iraq’s upstream oil industry. This was deemed to be important as Iraq increased its production during 2015 by almost 0.55 million barrels a day (mbd) over 2014.

However, it became questionable whether Iraq is likely to repeat this performance in 2016 or even later. Iraq is mired by problems of security, political and economic instability due to the precipitous decline of oil prices and its impact on the budget and investment spending."

"Nasdaq Dubai said Majid Al Futtaim Holding, the leading shopping mall with assets worth more than $12.5 billion, has listed $500 million of sukuk on its exchange.

The listing brings the total value of sukuk listings carried out on the exchange during 2015 to $13.25 billion, which is more than the total value that has listed during the year on the next three largest exchanges in the world combined."

"Nasdaq Dubai said Majid Al Futtaim Holding, the leading shopping mall with assets worth more than $12.5 billion, has listed $500 million of sukuk on its exchange.

The listing brings the total value of sukuk listings carried out on the exchange during 2015 to $13.25 billion, which is more than the total value that has listed during the year on the next three largest exchanges in the world combined."

"Qatar stocks led a retreat in Middle Eastern markets as oil’s decline to a seven-year low, scant evidence of a pick-up in Chinese growth and the prospect of a U.S. interest-rate increase next week unsettled investors across the region.
The QE Index sank 3.9 percent to 9,625.36 at 10:54 a.m. in Doha, the lowest since October 2013. The DFM General Index dropped for a sixth day, its longest losing sequence in a year, on investor concern that companies in Dubai, the Middle East’s commercial hub, may suffer if Gulf Arab governments reduce spending next year. The ADX General Index in Abu Dhabi, home to about 6 percent of the world’s proven oil reserves, lost 1.7 percent.
Emerging markets posted their worst week since September in the five days through Friday as asset prices from Shanghai to Istanbul and Sao Paulo retreated. While investors brace for this week’s meeting of the Federal Reserve and look for signs of an economic rebound in China, markets across the six-member Gulf Cooperation Council are being additionally roiled by a rout in crude prices that’s stoking concern countries will pare back budgets. Oil, their main source of revenue, has extended losses since the Organization of Petroleum Exporting Countries chose to keep flooding the market at its Dec. 4 meeting, racking up its biggest weekly loss in more than a year."

"Gulf markets fell in early trade on Sunday as the oil price slump fuelled a broad stock sell-off.

Brent crude posted its biggest weekly percentage drop in over a year on Friday to settle at $37.93 after the International Energy Agency (IEA) warned that global oversupply of crude could worsen next year.

Qatar's stock index tumbled 3.8 percent, taking its losses for the year to 21.7 percent, underperforming the MSCI emerging market index which is down 19 percent in 2015."

"Gulf markets fell in early trade on Sunday as the oil price slump fuelled a broad stock sell-off.

Brent crude posted its biggest weekly percentage drop in over a year on Friday to settle at $37.93 after the International Energy Agency (IEA) warned that global oversupply of crude could worsen next year.

Qatar's stock index tumbled 3.8 percent, taking its losses for the year to 21.7 percent, underperforming the MSCI emerging market index which is down 19 percent in 2015."